Once trendy denim maker Blue Holdings Inc. began trading on the over-the-counter Pink Sheets Wednesday morning after Nasdaq delisted the stock.

The Commerce jeans maker, whose brands include the Antik Denim, Yanuk, and Taverniti So Jeans, said it hopes to eventually move its stock to the over-the-counter Bulletin Board once it completes restating financial statements for the last five quarters and fiscal 2007, and meets other requirements of the National Association of Securities Dealers, which operates the board.

Blue Holdings reported in May that it would have to restate earnings after it found accounting errors. The company had been reporting lackluster sales for quite some time, and last October cut its work force by 25 percent and closed its only two retail outlets.

In addition to the financial statements problem, Nasdaq told the company this week that its inability to meet minimum requirements for share price and shareholder equity also were factors in the delisting. In July, the company was warned it lacked the necessary number of independent directors following the earlier resignation of one such director.

Blue Holdings shares, trading under the BLUE.PK ticker symbol, were 24 cents in morning trading.